The London hedge fund run by “Rottweiler” Martin Hughes, Toscafund Asset Management, enjoyed an upturn in its fortunes last year as profits rose 68%.
The company, founded by the former banking analyst in 2000, posted profits of £7.9 million before paying out bonuses and profit share, compared with £4.7 million in 2011. Turnover was up from £8.9 million to £11.9 million.
Hughes, who has an estimated £375 million fortune, earned his nickname through his aggressive investment style. The group paid £3.5 million to Toscafund Limited during the period, a company controlled by the opera-loving hedge-fund manager.
In documents filed at Companies House, the company said it was bullish about its prospects in 2013.
This year it has already bagged a share of a £550 million windfall from Esure’s IPO in March.
“The downturn in the financial markets in the second half of the year had an impact on results but the members are confident that this will be reversed in the forthcoming year and that the partnership will remain profitable in 2013 and subsequent years,” Toscafund said.
Toscafund had previously run into difficulties after placing huge bets on a recovery in the housebuilding and banking sectors in the lead-up to Lehman’s collapse in 2008.
Tosca’s profits tumbled 83% from £158 million to £26.9 million in that year.
